Nokia profits from sale of $20 Nokia 105

Nokia profits from sale of $20 Nokia 105
You wouldn't think that much money could be made from selling a $20 phone. But a breakdown of the low-end Nokia 105 by IHS shows that even after paying $14.20 for the materials, components and manufacturing cost, the Finnish handset maker still makes a decent amount of money for each unit sold as the hardware and manufacturing margin works out to 29%. The Nokia 105 is targeted for emerging markets where spending money for the latest touchscreen handset is a luxury. Those countries include Africa, Latin America and India.

The breakdown reveals that a lot of the cost savings on the Nokia 105 is due to Infineon Corp.'s PMB7900. This one chip combines the baseband and RF Tranceiver allowing for it to handle GSM/GPRS functions. Combining all of this on one chip allows Nokia to get away with including only three ICs on the phone. An earlier, similar model called the Nokia 1110 used to have six ICs inside. IHS analyst Wayne Lam sums it up by saying, "This is the fruit of nearly a decade's worth of integration. By riding Moore's law and holding the line on features, Nokia has gone from six discrete integrated circuits (ICs) to just one core device plus two other ICs."

The three integrated circuits in the phone have a cost of $5.25, representing 39% of the cost of materials for the device. The color display, at $2.25, accounts for 17% of the cost of materials. By using a low end display with resolution of 128 x 128, Nokia can keep the price cheap. Besides the FM radio, the phone offers multiple alarm clocks, a speaking clock, battery life of 35 days and a flashlight. The device is also water and dust proof. These lower end models still account for the lion's share of Nokia's business. In the first quarter of this year, the company shipped shipped 5.6 million Lumia products, 500,000 Symbian-based devices and 55.8 million feature phones.

source: FierceWireless (1), (2)

Related phones

105
  • Display 1.4" 128 x 128 pixels
  • Battery 800 mAh

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40 Comments

1. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

That's it! Shut up and take my money! lol

10. haseebzahid

Posts: 1853; Member since: Feb 22, 2012

lol how much will you carry of these phones altest a dozen with 450$

23. Boreni

Posts: 28; Member since: Feb 22, 2013

450/20=22.5-->20 "Those countries include Africa, Latin America and India." India is a country but Africa and Latin America are not countries! Alan F, You missed the lessons in geography? ;)

26. raunak

Posts: 507; Member since: Oct 12, 2011

You should be happy. I was surprised he knew the world didn't end at america's borders.

28. Boreni

Posts: 28; Member since: Feb 22, 2013

I thought they are located in Europe. You know how they make a living? I do not see an commercial and such on this site.

29. raunak

Posts: 507; Member since: Oct 12, 2011

You don't see ads probably because you browse on mobile site.

30. Boreni

Posts: 28; Member since: Feb 22, 2013

No, i browse on PC.

31. raunak

Posts: 507; Member since: Oct 12, 2011

Which country are you from?

34. Boreni

Posts: 28; Member since: Feb 22, 2013

Israel

40. SonyXperiaNexus

Posts: 374; Member since: Oct 01, 2012

you must have installed adblock or something. i dont see ads anymore coz i did that myself

32. ash29

Posts: 58; Member since: Oct 28, 2011

Good catch

33. haseebzahid

Posts: 1853; Member since: Feb 22, 2012

:O wao that more than a dozen

2. dan86

Posts: 298; Member since: Mar 17, 2012

Low end models still rock, because few people belive that a person should be smart rather his phone.

3. raunak

Posts: 507; Member since: Oct 12, 2011

This is a must have emergency phone.

14. quyenqchau0813 unregistered

I heard this phone only have two GSM bands and it cannot work in U.S. T_T

4. Potato.

Posts: 607; Member since: Jun 14, 2013

Nokia 105 review? :D

5. KiranPAUSER

Posts: 73; Member since: Feb 15, 2013

Great one still making profit. I heard lumia 520 has almost zero profit!

35. cdgoin

Posts: 614; Member since: Jul 28, 2010

Actually rumor has it the 521 due to similar efficiencies actually has a larger profit % than the 920 or 925, when you add the MS subsidy.

6. Penny

Posts: 1844; Member since: Feb 04, 2011

Wow, that is cheap. Can't imagine building out a downstream for such efficient production and distribution.

7. livyatan

Posts: 867; Member since: Jun 19, 2013

Brilliant product

8. EXkurogane

Posts: 863; Member since: Mar 07, 2013

Efficient manufacturing and cost saving.

9. sampath.soundappan

Posts: 2; Member since: Jun 29, 2013

The Nokia 105 is definitely a bang for the buck. Just purchased a black one two days back and I am amazed by the quality and feel of the phone. Very nice keypad and excellent battery backup.

11. cheeseycheeser

Posts: 413; Member since: Mar 24, 2011

Last I checked Africa and Latin America weren't countries! ;)

12. ilia1986 unregistered

I wonder what's the Antutu score for this beast.. :D

13. pyradark

Posts: 895; Member since: Jun 10, 2012

Inifinite. It doesnt crash compare to smartphone

15. Jason2k13

Posts: 1440; Member since: Mar 28, 2013

can someone tell me if this phone lags on modern combat 3?

16. iushnt

Posts: 3043; Member since: Feb 06, 2013

No this phone doesn't lag..this phone doesn't accept those apps and games which can create lags..thats why this phone is smooth

17. raunak

Posts: 507; Member since: Oct 12, 2011

Should not. I tried crysis 3. Gave me 40 fps at medium settings.

20. SonyXperiaNexus

Posts: 374; Member since: Oct 01, 2012

b!tch plz. it gives 200fps on snakes which is better than crysis 3

19. SonyXperiaNexus

Posts: 374; Member since: Oct 01, 2012

it cant run modern combat 3 (coz nokia doesnt allow it that is) but its battery was enough to power my laptop for 12 hours which does.

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